Back-to-School: In-Store Trends, Supply Chain Risks, & Customer Retention

Ian Sinclair

Ian Sinclair

EVP, Commercial Solutions

ISinclair@nls.ca

National Logistics Services
150 Courtneypark Drive West
Mississauga, Ontario

In turbulent economic times, a true logistics partner can scale up, optimize and help your fast-moving enterprise adapt and thrive. 

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A Retail Council of Canada survey shows 72.7% of consumers will spend over $50 on back-to-school shopping in 2024, with 85% maintaining or increasing their budget. Retailers face supply chain issues from wildfires and delays, risking shortages. Shoppers are prioritizing value, benefiting discount stores, while full-price retailers struggle. Amazon Prime Day saw over 80% shopper loyalty, and Drewry’s World Container Index dropped 3% to $5,551 USD per 40-ft container.

A Retail Council of Canada (RCC) survey shows 72.7% of consumers plan to spend over $50 on back-to-school shopping in 2024, with 85% maintaining or increasing spending. Nearly 75% prefer in-store shopping, reversing the pandemic trend. More shoppers are preparing early, with 37.1% making purchases 2-4 weeks before school starts. The retail sector employs over 2.3 million Canadians and generates more than $91 billion annually.

Canadian retailers are facing supply chain disruptions due to wildfires and delays at the Port of Vancouver, potentially risking inventory shortages for the back-to-school season. Wildfires are impacting rail operations, while delays at ports contribute to the uncertainty. To mitigate these risks, retailers are increasing inventory levels and exploring alternative shipping methods. Experts emphasize the importance of leveraging technology and strong leadership to navigate these challenges and ensure supply chain resilience.

Consumers are prioritizing value and quality over price. Retailers emphasizing high quality, such as dollar stores and off-price retailers, are thriving, while those selling full-price items struggle. Brands like Abercrombie & Fitch and Warby Parker are succeeding by focusing on quality and value. Delivering perceived value is crucial for attracting and retaining customers.

Amazon Prime Day led in customer loyalty this summer, with over 80% of shoppers buying only from Amazon, according to Earnest Analytics. Amazon reached a record $14.2 billion in online spending during the event. Meanwhile, TikTok Shop’s Deals For You Days saw a notable 81% increase in online sales compared to January, gaining a significant share of U.S. e-commerce.

Drewry’s World Container Index has dropped 3% to $5,551 USD per 40-ft container as rates continue to decline. The current rate is 47% below the pandemic peak but remains significantly higher than pre-pandemic levels. Some experts think shipping disruptions may stabilize rates in the near future.

Is your business prepared for the BFCM 2024 season? Let’s explore your eCommerce fulfillment strategies if you have a moment for a brief call. Our team of seasoned logistics professionals is prepared to evaluate your needs and formulate a customized plan to propel your business forward.
For quick and easy scheduling, here’s a link to my full calendar.

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NLS Logistics Team Communications
As a leading Third Party Logistics (3PL) firm, we have the strategic infrastructure, technology relationships, and insights to help Canadian and international brands reach and serve the Canadian market
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